Details of TEST BANK Commerce 2BC3
Chapter 1—Changing Nature of Human Resources Management
MULTIPLE CHOICE
1. Which of the following best defines
... [Show More] human resources management?
a. the use and coordination of human skills to ensure the profitability and survival of the
organization
b. the design of the organization and its systems in order to achieve the goals of the
organization
c. the supervision, monitoring, controlling, and disciplining of employees in order to achieve
organizational goals
d. the policies, practices, and systems that influence how employees behave, feel, and
perform to attain organizational goals
ANS: D PTS: 1 DIF: Moderate REF: 3
OBJ: 01-1 TOP: Definitional
2. Which of the following is human resources (HR) management primarily a function of?
a. non-governmental organizations
b. organizations with any number of employees
c. for-profit organizations with more than 100 employees
d. businesses holding federal contracts over $50 000
ANS: B PTS: 1 DIF: Easy REF: 3
OBJ: 01-1 TOP: Conceptual
3. Which form of management provides a system of policies and practices designed to influence
employee behaviour and functioning to support the goals of the company?
a. personnel administration
b. human resources management
c. human capital management
d. strategic management
ANS: B PTS: 1 DIF: Easy REF: 3
OBJ: 01-1 TOP: Definitional
4. How do global forces affect HR management?
a. affected primarily in the international outsourcing of jobs
b. affected in almost all of its functions
c. unaffected by global forces
d. affected primarily when the organization expands into foreign markets
ANS: B PTS: 1 DIF: Moderate REF: 3
OBJ: 01-1 TOP: Conceptual
5. Who is directly responsible for anticipating and responding to HR changes in the organization?
a. specialists in HR strategic management
b. HR development professionals
c. HR management information systems professionals
d. the CEO and board of directors of the organization
ANS: A PTS: 1 DIF: Easy REF: 3
OBJ: 01-1 TOP: Definitional
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6. HR management is responsible for providing enough qualified individuals to fill the jobs in the
organization. Through which of the following means does it do so?
a. employment equity
b. staffing
c. performance management
d. strategic HR management
ANS: B PTS: 1 DIF: Easy REF: 5
OBJ: 01-1 TOP: Definitional
7. Diversity and employment equity are both tied to a larger aspect of human resources management.
Which of the following are they functions of?
a. the position of the company as a forward-thinking employer
b. the values of unionized workplaces as opposed to non-unionized workplaces
c. HR management information systems
d. compliance with equal employment opportunity laws and regulations
ANS: D PTS: 1 DIF: Easy REF: 5
OBJ: 01-1 TOP: Definitional
8. Which aspect of HR management focuses on ensuring that the organization can fill jobs with
appropriately qualified individuals ?
a. staffing
b. strategic planning and analysis
c. development
d. diversity assessment and training
ANS: A PTS: 1 DIF: Easy REF: 5
OBJ: 01-1 TOP: Definitional
9. Which of the following HR components identifies paths and activities for individual employees within
the organization?
a. staffing
b. career planning
c. HR development
d. performance management
ANS: B PTS: 1 DIF: Easy REF: 5
OBJ: 01-1 TOP: Definitional
10. Which of the following activities are part of HR development?
a. diversity assessment and analysis
b. performance management
c. environmental scanning
d. wage and salary administration
ANS: B PTS: 1 DIF: Easy REF: 5
OBJ: 01-1 TOP: Definitional
11. Which of the following costs poses a major and growing concern to HR managers in almost all
organizations?
a. equalization of pay between men and women
b. benefits
c. early retirement packages
d. incentive pay
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ANS: B PTS: 1 DIF: Easy REF: 5
OBJ: 01-1 TOP: Conceptual
12. For which of the following are employee assistance programs typically used?
a. providing concierge service for employees
b. outplacing laid-off employees
c. advising employees in selection of benefit options
d. helping employees with substance abuse problems
ANS: D PTS: 1 DIF: Moderate REF: 5
OBJ: 01-1 TOP: Definitional
13. The HR director of Tyrone Plastics is concerned about the increasing incidence of workplace violence
nationwide. Which of the following types of programs might she initiate in the company to address her
concern?
a. employee rights
b. employee assistance
c. monitoring
d. security
ANS: D PTS: 1 DIF: Moderate REF: 5
OBJ: 01-1 TOP: Application
14. In which workplace settings must employee rights be specifically addressed?
a. in union-free workplaces
b. in all organizations
c. in unionized organizations
d. in government rather than private-sector workplaces
ANS: B PTS: 1 DIF: Moderate REF: 6
OBJ: 01-1 TOP: Conceptual
15. Henry, the production manager for a chemical plant, resents what he feels are unwarranted intrusions
into his territory by HR managers. He believes that relationships with his employees are strong and
supportive, and that HR initiatives generally cause unnecessary trouble. What is off in Henry’s
relationship with the HR managers?
a. Henry would be surprised to learn that every manager, including him, is an HR manager.
b. Henry is probably committing major violations of company policy and wants to keep this
secret from HR management.
c. The HR function is a support function, and as Henry believes, it should not intrude on
day-to-day management functions.
d. HR managers have the sole responsibility for properly implementing company policy
regarding employees—Henry has failed to recognize this.
ANS: A PTS: 1 DIF: Moderate REF: 6
OBJ: 01-1 TOP: Application
16. Which of the following is NOT a major HR concern of small businesses?
a. potential unionization efforts
b. increasing wage costs
c. increasing benefits costs
d. shortages of qualified workers
ANS: A PTS: 1 DIF: Easy REF: 6
OBJ: 01-1 TOP: Conceptual
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17. Matt has recently joined his family’s wholesale landscape nursery business as vice president of
operations. The firm employs 25 full-time employees and about 20 seasonal employees. In the past,
Matt’s father handled all HR issues. Matt plans to bring the company in line with typical HR staffing
levels. Which of the following options best reflects that?
a. taking on all HR duties himself as VP of operations
b. adding a clerical employee to help with HR tasks
c. hiring a full-time HR professional
d. delegating all HR tasks and issues to supervisors
ANS: B PTS: 1 DIF: Challenging REF: 6
OBJ: 01-1 TOP: Application
18. Which are the four key types of assets in an organization?
a. physical, financial, tangible, and human
b. physical, financial, intangible, and human
c. physical, tangible, technological, and human
d. tangible, technological, human, and knowledge
ANS: B PTS: 1 DIF: Easy REF: 7
OBJ: 01-2 TOP: Definitional
19. Which of the following assets allow all the other assets of a university to be used to offer educational
services to its students?
a. administrators, professors, and other employees
b. libraries, laboratories, and technological learning facilities
c. financial endowment and income
d. unique operating processes, specialized research capabilities, and other intangible assets
ANS: A PTS: 1 DIF: Moderate REF: 7
OBJ: 01-2 TOP: Application
20. Which of the following terms best encompasses the value of all the capabilities, knowledge, skills, life
experiences, and motivation that people contribute to a workforce?
a. total human resources
b. human assets
c. organizational talent inventory
d. human capital
ANS: D PTS: 1 DIF: Moderate REF: 7
OBJ: 01-2 TOP: Definitional
21. Human resources and workforce-related expenditures can be viewed as a percentage of total company
expenditures. Which of the following statements outlines the trend in this regard in the last decade?
a. Costs have remained stable.
b. Costs have been declining rapidly.
c. Costs have shown wide swings.
d. Costs have been rising steeply.
ANS: D PTS: 1 DIF: Moderate REF: 8
OBJ: 01-2 TOP: Conceptual
22. The chief financial officer of McGill Tubing wants to know the contribution of McGill’s workforce
toward creating value for shareholders. Which calculation-based analysis would provide this
information?
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a. the human capital revenue stream
b. profit per employee
c. return on human capital investments
d. marginal revenue generated per employee
ANS: C PTS: 1 DIF: Challenging REF: 8
OBJ: 01-2 TOP: Application
23. What is human resources to a firm when the human resources function develops a unique capability
that creates high value and differentiates the organization from its competition?
a. emerging asset
b. critical capability
c. tangible asset
d. core competency
ANS: D PTS: 1 DIF: Easy REF: 8
OBJ: 01-2 TOP: Definitional
24. A rumour at the largest law firm in the city is that the partners may outsource much of the work done
by paralegals in the firm to a company in India. If you were a paralegal at this firm, what would be the
most appropriate way to respond and why?
a. Relax. Work of this level of professionalism cannot be outsourced to a foreign firm.
b. Consider your options. Only occupations that are dying are considered for outsourcing.
c. Consider your options. The firm can generate huge labour cost savings by outsourcing
your job.
d. Relax. Work that requires intimate knowledge of the Canadian legal system cannot be
outsourced.
ANS: C PTS: 1 DIF: Moderate REF: 9
OBJ: 01-3 TOP: Application
25. Prestige Executive Services offers companies ransom insurance policies for up to $10 million. Which
of the following HR management challenges has generated this business opportunity?
a. organizational cost pressures and restructuring
b. economic and technological changes
c. workforce demographics and diversity
d. globalization of business
ANS: D PTS: 1 DIF: Moderate REF: 9
OBJ: 01-3 TOP: Application
26. Which of the following occupational areas is a defining characteristic of the Canadian economy?
a. industrial
b. technological
c. manufacturing
d. service
ANS: D PTS: 1 DIF: Easy REF: 10
OBJ: 01-3 TOP: Conceptual
27. In which occupational area can be found most of the new jobs held by individuals?
a. health care
b. professions
c. information technology
d. services
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ANS: D PTS: 1 DIF: Moderate REF: 10
OBJ: 01-3 TOP: Conceptual
28. Which of the following fields is fastest growing in occupations?
a. health care
b. human resources
c. manufacturing
d. the public sector
ANS: A PTS: 1 DIF: Moderate REF: 10-11
OBJ: 01-3 TOP: Conceptual
29. The Conference Board of Canada would define all but one of the following as soft skills needed in a
knowledge economy. Which is the exception?
a. computer skills
b. communication skills
c. flexibility
d. problem-solving skills
ANS: A PTS: 1 DIF: Moderate REF: 11
OBJ: 01-3 TOP: Definitional
30. Which of the following statements makes an accurate link between the Canadian education system and
the demands of the workplace?
a. Too many people with manufacturing skills are seeking jobs, making wages low in that
sector.
b. Canadian schools are graduating more engineers than can be used in the economy.
c. Canadian students outperform students in other, directly competitive nations in math and
science.
d. Canadian firms are concerned about the specific skills of new graduates.
ANS: D PTS: 1 DIF: Moderate REF: 11
OBJ: 01-3 TOP: Conceptual
31. Which of these terms encompasses temporary workers, independent contractors, and leased
employees?
a. contingent workers
b. part-time workers
c. virtual employees
d. extra-organizational employees
ANS: A PTS: 1 DIF: Easy REF: 12
OBJ: 01-3 TOP: Definitional
32. Some businesses use contingent workers; some do not. Which of the following is NOT a reason for
using contingent workers?
a. to stabilize the core workforce
b. to encourage employee loyalty
c. to reduce compensation and benefit costs
d. to potentially avoid legal liability for workers
ANS: A PTS: 1 DIF: Challenging REF: 12
OBJ: 01-3 TOP: Conceptual
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33. A government policy seeks to ensure that all citizens can keep their identities, take pride in their
backgrounds, and feel a sense of belonging. Which of the following names the policy?
a. cultural management
b. cultural diversity
c. employment equality
d. multiculturalism
ANS: D PTS: 1 DIF: Easy REF: 13
OBJ: 01-3 TOP: Definitional
34. To which of the following conditions has the improvement in communication technology led?
a. a reduction of stress for workers
b. better work–life balance for employees in professional occupations
c. ease of managing temporary employees
d. an increase in the number of hours worked per employee
ANS: D PTS: 1 DIF: Challenging REF: 13
OBJ: 01-3 TOP: Conceptual
35. Which of the following HR management practices has NOT become Web based?
a. recruiting
b. performance improvement counselling
c. performance appraisal documentation
d. benefits enrollment
ANS: B PTS: 1 DIF: Moderate REF: 14
OBJ: 01-3 TOP: Conceptual
36. Which of the following statements presents an accurate picture of the age factor in the workforce?
a. Despite the many layoffs occurring in the last decade, the average age of the workforce is
older.
b. Because of the many early retirement programs instituted in the last decade, the average
age of the workforce is younger.
c. As the workforce ages, the need for diversity management is decreasing—the workforce
has psychological maturity.
d. Variation of ages in the workplace is not considered diversity in the same sense that
variation by race and gender is considered diversity.
ANS: A PTS: 1 DIF: Challenging REF: 15
OBJ: 01-3 TOP: Conceptual
37. What are flexible hours, job-sharing, child-care referral services, and flexible leave all examples of?
a. programs mandated by the Employment Equity Act
b. executive perks
c. anti-unionization measures
d. retention programs based on work–family concerns
ANS: D PTS: 1 DIF: Easy REF: 15
OBJ: 01-3 TOP: Conceptual
38. Claude is the HR manager for a pharmaceuticals firm. One of his top salespersons, Agatha, has twin
boys under age two. Despite the fact that Agatha has a full-time nanny, she is clearly overwhelmed by
the demands of her work and her personal life. Which of the following should probably be Claude’s
main concern in this case?
a. retaining Agatha as an employee
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b. getting Agatha to refocus on her career through motivational training
c. assessing whether Agatha will file lawsuit
d. persuading Agatha to resign without violating the Canadian Human Rights Act
ANS: A PTS: 1 DIF: Moderate REF: 15
OBJ: 01-3 TOP: Application
39. Which of the following activities is NOT usually associated with organizational “rightsizing”?
a. closing facilities
b. merging with other organizations
c. displacing workers
d. increasing layers of management
ANS: D PTS: 1 DIF: Easy REF: 16
OBJ: 01-3 TOP: Conceptual
40. Which of the following has been the main pressure behind restructuring, rightsizing, and mergers and
acquisitions?
a. the desire to increase profits
b. obsolescence of plant and equipment
c. the need to reduce costs
d. intense domestic competition
ANS: C PTS: 1 DIF: Moderate REF: 15
OBJ: 01-3 TOP: Conceptual
41. As HR manager of a mid-sized auto parts manufacturing plant, you have been asked to predict the
impact on the employees of a 20 percent layoff of hourly workers. Which of the following predictions
are you LEAST likely to include in your memo to the CEO?
a. increased turnover of survivors
b. productivity surge by survivors
c. potential loss of employee loyalty
d. increased workload on survivors
ANS: B PTS: 1 DIF: Moderate REF: 16
OBJ: 01-3 TOP: Application
42. Charlotte is describing her new HR position to a friend. She says that she handles most of the clerical
duties involved in running the HR department, including such tasks as maintaining employee files and
submitting governmental reports. Into which HR role would Charlotte’s job fall?
a. administrative
b. employee advocate
c. secretarial
d. operational
ANS: A PTS: 1 DIF: Easy REF: 16
OBJ: 01-4 TOP: Application
43. Which situation is NOT affecting the roles played by HR management within the firm?
a. increasing need for high-technology workers
b. business restructuring
c. cost reduction pressures
d. globalization of business
ANS: A PTS: 1 DIF: Moderate REF: 16
OBJ: 01-4 TOP: Conceptual
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44. Which of the following HR roles typically involve recruiting and selecting for current openings?
a. employee advocacy
b. operational
c. strategic
d. administrative
ANS: B PTS: 1 DIF: Moderate REF: 18
OBJ: 01-4 TOP: Conceptual
45. Woodland Production Company employees more than 2000 hourly workers. The HR department is
debating the introduction of Web-based technology to handle employment applications, employee
benefit enrollments, and other related functions. Which HR department role will be most affected by
the move to this technology?
a. administrative
b. operational
c. strategic
d. employee advocate
ANS: A PTS: 1 DIF: Easy REF: 16
OBJ: 01-4 TOP: Application
46. While one HR management role has been declining in emphasis, another has been increasing in
importance. Which are the former and latter roles?
a. strategic, operational and advocate
b. administrative, strategic
c. operational, administrative and advocate
d. advocate, operational and administrative
ANS: B PTS: 1 DIF: Moderate REF: 17| Figure 1-4
OBJ: 01-4 TOP: Conceptual
47. Which of the following HR activities is most likely to be outsourced?
a. performance management
b. benefits administration
c. strategic planning
d. risk management
ANS: B PTS: 1 DIF: Moderate REF: 17
OBJ: 01-4 TOP: Conceptual
48. What is the main reason why HR functions are outsourced?
a. to eliminate internal tension
b. to provide consistent service despite staff turnover
c. to be able to focus on more strategic product development
d. to save money on staffing
ANS: A PTS: 1 DIF: Easy REF: 17
OBJ: 01-4 TOP: Conceptual
49. Which of the following HR roles is associated with ensuring ensure fair and equitable treatment for
employees no matter what their background or circumstances are?
a. strategic
b. operational
c. administrative
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d. employee advocate
ANS: D PTS: 1 DIF: Easy REF: 18
OBJ: 01-4 TOP: Definitional
50. As the vice president of HR for Woodland Production, you are presenting a proposal to top
management for outsourcing many of your department’s administrative HR functions to vendors. You
argue that HR vendors have greater expertise than your in-house staff and that outsourcing will allow
you to spend more time on the strategic aspects of HR. Which of the following should be your key
selling point to top management?
a. the ability to have closer contact with HR’s clients, the employees
b. the prestige of retaining a world-class vendor
c. the improvement in morale of HR staff
d. the reduction in HR administrative staff
ANS: D PTS: 1 DIF: Moderate REF: 18
OBJ: 01-4 TOP: Application
51. Which of the following activities is categorized as an advocacy aspect of HR management?
a. engaging in community workforce development planning
b. resolving employee complaints about unfair treatment
c. conducting new employee orientations
d. engaging in labour/management negotiations
ANS: B PTS: 1 DIF: Easy REF: 18
OBJ: 01-4 TOP: Definitional
52. HR management can reduce the number of employee lawsuits against the company. Which of the
following roles is most influential in achieving this reduction?
a. administrative
b. strategic
c. operational
d. advocate
ANS: D PTS: 1 DIF: Moderate REF: 18
OBJ: 01-4 TOP: Conceptual
53. Which of the following is NOT a typical HR operational activity?
a. monitoring safety programs
b. partnering with top executives
c. supervising compensation
d. ensuring government compliance
ANS: B PTS: 1 DIF: Moderate REF: 19
OBJ: 01-4 TOP: Conceptual
54. Which is a key difference between operational HR management and strategic HR management?
a. planning oriented versus implementation oriented
b. employee focused versus organization focused
c. profit focused versus cost focused
d. pro-active versus reactive
ANS: B PTS: 1 DIF: Moderate REF: 19| Figure 1-5
OBJ: 01-4 TOP: Conceptual
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55. In the professional and academic communities, it is a truism that HR management must be a strategic
partner in organizations. Which of the following statements is supported by research?
a. Dramatic growth of the strategic HR function has occurred.
b. HR spends less than one-quarter of its time on its strategic role.
c. Strategic HR has been largely eliminated from the organization and lodged in the position
of the chief operating officer.
d. Over 70 percent of HR managers report that they function as full strategic business
partners.
ANS: B PTS: 1 DIF: Moderate REF: 20
OBJ: 01-4 TOP: Conceptual
56. The top executives of an organization may truly view the top HR manager as contributing to the
strategic success of the firm. Which of these requests from top management best exemplifies that
perception?
a. Improve the implementation of performance appraisals for supervisors.
b. Streamline the employee selection process.
c. Select a vendor for outsourcing benefits administration.
d. Evaluate potential merger candidates for organizational compatibility.
ANS: D PTS: 1 DIF: Challenging REF: 20
OBJ: 01-4 TOP: Conceptual
57. Which type of HR is it when professionals from different organizations work together to solve
business problems they have in common?
a. professional
b. collusive
c. operational
d. collaborative
ANS: D PTS: 1 DIF: Easy REF: 20
OBJ: 01-4 TOP: Definitional
58. Eric belongs to an informal group of HR compensation executives from various industries who meet
once a month at a local restaurant to discuss problems that they all face, for example, the challenge of
designing true merit pay systems. Which of these practices are Eric and his colleagues engaging in?
a. cronyism
b. collaboration
c. collusion
d. competition
ANS: B PTS: 1 DIF: Moderate REF: 20
OBJ: 01-4 TOP: Application
59. Which of the following terms refers to an integrated system that provides information used in HR
decision making?
a. human resources information system.
b. human resources management system
c. human resources administrative system.
d. human resources operational system.
ANS: B PTS: 1 DIF: Easy REF: 21
OBJ: 01-5 TOP: Definitional
60. Which of the following is the primary reason for compiling data in HR management systems?
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